Annual Report 2010 - Savatech

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ANNUAL REPORT 2010 ∂ BUSINESS REPORT7.Purchasingand suppliersThe year 2010, was marked by a stable growthin prices of raw materials prices for the rubbermanufacturing industry, which had begun alreadyin the middle of 2009. At the beginning of 2010,the price of natural rubber, one of the strategic rawmaterials that Savatech uses, reached its 2008 recordvalue. After a slight decrease in the middle of theyear, the price of natural rubber rapidly began to riseand at the end of the year it exceeded USD 5,000 /t.Raw material prices rose,certain raw materials evenbroke their price record.Natural rubberprices in 2010(in USD / t)5,5005,0004,5004,0003,5003,0002,500 201030
ANNUAL REPORT 2010 ∂ BUSINESS REPORTOil prices in 2010(in USD)90858075702010The prices of all other raw materials for the rubbermanufacturing industry grew along with the pricesof natural rubber, oil, unfavourable exchange rateEUR/USD and a strong demand. Despite the fact thatthe prices of monomers slightly fell in the middleof the year, this did not translate into decreasingprices of raw materials for the rubber manufacturingindustry. Great demand and low availability werethe propelling power of price rises and the marketgrowth.In 2009, the raw materials manufacturers decreasedtheir inventories and production, or shut downplants and adjusted to the market situation. Sincethe expected global industrial growth in 2009 and2010 was lower than the actual one, raw materialswere lacking, first synthetic rubber, especiallyEPDM, which pushed up the prices. Problems withavailability continued in the second half of 2010when also chemicals, carbon black and other rawmaterials needed in the rubber industry ran short.Manufacturers achieve better selling prices of rawmaterials in the Asiatic market where the demandis really strong. Since their own production is notsufficient for covering all requirements, the shareof exports to Asia is increasing, which on the otherhand is causing a shortage on raw materials in theEU market.In the first half year, the price of reinforcing materialswas stable, while in the second half year it beganto rise. Owing to a price rise in paper, the cost ofpackaging rose too.31
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Annual Report 2010 - Savatech

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